UNITED STATESSECURITIES AND EXCHANGE
COMMISSIONWashington, D.C. 20549

---

FORM 10-Q

---

[X]       QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
             SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2005

OR

[  ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

For the transition period from ________to _________

Commission file number 1-10981



SBS Technologies, Inc.



|New Mexico                                                     | 85-0359415                             
|-------------------------------------------------------------- | ---------------------------------------
|(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification Number)

2400 Louisiana Blvd. NE AFC Building 5, Suite 600
Albuquerque, New Mexico      87110

(505) 875-0600




Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file reports), and (2) has been subject to such filing
requirements for the past 90 days. YES [ X ]      NO [       ]

Indicate by check mark whether the Registrant is an accelerated filer (as defined in
Rule 121(b)2 of the Securities Exchange Act of 1934). YES [ X ]
      NO [       ]

The total number of shares outstanding of the registrant's Common Stock as of April 30, 2005 was 15,639,679.












SBS Technologies, Inc. and Subsidiaries
Form 10-Q for the Quarter Ended March 31, 2005

Table of Contents





|        |                                                                                                    | Page
|------- | -------------------------------------------------------------------------------------------------- | ----
|        | Forward Looking Statements                                                                         | 2   
|PART I  | FINANCIAL INFORMATION                                                                              |     
|        | Item 1 - Unaudited Condensed Financial Statements                                                  |     
|        | Consolidated Balance
SheetsAs of March 31, 2005 and June 30, 2004                                  | 3   
|        | Consolidated Statements of
Operations
For the three and nine months ended March 31, 2005 and
2004  | 4   
|        | Consolidated Statement of
Changes in Stockholders' Equity
For the nine months ended March 31, 2005 | 5   
|        | Consolidated Statements of
Cash Flows
For the nine months ended March 31, 2005 and
2004            | 6   
|        | Notes to Condensed
Consolidated Financial StatementsAs of March 31, 2005                           | 7   
|        | Item 2 -Management's
Discussion and Analysis of Financial Condition and Results of
Operations      | 14  
|        | Item 3 -Quantitative and
Qualitative Disclosures About Market Risk                                 | 26  
|        | Item 4 -Controls and
Procedures                                                                    | 26  
|PART II | OTHER INFORMATION                                                                                  |     
|        | Item 5 -Other
Information                                                                          | 27  
|        | Item 6 -Exhibits                                                                                   | 28  
|        | SIGNATURES                                                                                         | 29  
|        | EXHIBIT INDEX                                                                                      | 30  



---

FORWARD-LOOKING
STATEMENTS

This Form 10-Q contains forward-looking statements with
respect to the financial condition, results of operations, and business of SBS
Technologies, Inc. and subsidiaries (referred to variously as "SBS",
"we", "us" and "our").  You may find many of these
statements by looking for words like "intends," "expects,"
"projects," "believes," "anticipates" or similar
expressions in this Form 10-Q. We consider all statements regarding anticipated
or future matters, including the following, to be forward-looking
statements:

- statements about future events and our future financial
performance, including delays in production from government programs as a result
of the timing of follow-on orders;
- expected sales and gross margin, including the
continuation of the business conditions we experienced in the third
quarter;
- financing plans and expectations of internally-generated
cash flows, including cash flows from employee stock option exercises;
- new product introductions, including increasing our
intellectual property;
- growth of the markets we serve;
- business strategy and competitive position;
- plans and objectives of management for future
operations;
- growth opportunities for existing products and services;
and
- benefits from new technology.



These statements are not guarantees of our future
performance. They are based upon our assumptions and assessments only on the
date we made them and in light of our experience and our perception of
historical trends, current conditions, expected future developments, and other
factors we believe to be appropriate. Our assumptions and assessments include
the volume and product mix of sales, estimates of costs, inventory and
receivable levels based on preliminary information, and others.  Risks,
uncertainties, and other important factors could cause actual performance or
achievements to be materially different from those we may project. These risks,
uncertainties, and factors include:

- general business and economic conditions affecting our
customers and their end customers, may be less favorable than we expect,
resulting in lower sales and earnings;
- a high degree of uncertainty and rapid change in the
markets addressed by our products, which may affect the timing and amount of
future sales levels or cause the market value of our inventory to decline,
resulting in reduced gross profit levels;
- customer demand for and acceptance of our products, which
may be less than we expect, which may decrease both sales and margins;
- our ability to design, test, and introduce new products
on a timely basis, which if not timely, may decrease both sales and
margins;
- changes in foreign currency exchange rates, which could
impact our financial results;
- changes in U.S. and foreign laws and regulations, which
could result in increased costs, lowered sales, or reduced earnings;
and
- the other risk factors listed under "Risk
Factors" included in SBS' Annual Report on Form 10-K for the year ended
June 30, 2004.



Many of the factors that will determine these items are
beyond our ability to control or predict. We caution you not to place undue
reliance on our forward-looking statements, which speak only as of the date of
this Form 10-Q.  We do not undertake any obligation to update publicly or revise
any forward-looking statements, whether as a result of new information, future
events, or otherwise.

---





SBS Technologies, Inc. and
Subsidiaries
Consolidated Balance Sheets
Thousands (except share amounts)
(Unaudited)

---

`March 31,         June 30,
                                                                         2005             2004
                                                                     -------------    -------------
                           ASSETS
Current assets:
  Cash and cash equivalents....................................... $       55,014   $       47,943
  Receivables, net ...............................................         23,575           23,776
  Inventories.....................................................         26,930           26,249
  Income taxes receivable.........................................             --              983
  Deferred income taxes...........................................          1,346            1,351
  Prepaid expenses................................................          1,905            1,573
  Other current assets............................................          1,106              332
                                                                     -------------    -------------
    Total current assets..........................................        109,876          102,207

Property and equipment, net.......................................          7,795            7,979
Goodwill..........................................................         17,934           16,734
Intangible assets, net............................................          3,564            4,764
Deferred income taxes.............................................         13,430           13,173
Other assets......................................................            349              279
                                                                     -------------    -------------
    Total assets.................................................. $      152,948   $      145,136
                                                                     =============    =============
            LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Accounts payable................................................ $        3,559   $        6,854
  Accrued representative commissions..............................            662              889
  Income taxes payable............................................          2,065               --
  Accrued compensation............................................          5,313            4,893
  Accrued severance and consolidation costs.......................            541              870
  Other current liabilities ......................................          2,697            1,986
                                                                     -------------    -------------
    Total current liabilities.....................................         14,837           15,492
Other long-term liabilities.......................................             12               17
                                                                     -------------    -------------
    Total liabilities.............................................         14,849           15,509
                                                                     -------------    -------------
Stockholders' equity:
  Common stock, no par value; 200,000,000 shares authorized;
    15,642,929 issued and outstanding at March 31, 2005,
    15,496,949 issued and outstanding at June 30, 2004............         98,337           96,601
  Unearned compensation...........................................           (146)             (29)
  Accumulated other comprehensive income..........................          5,087            1,891
  Retained earnings...............................................         34,821           31,164
                                                                     -------------    -------------
    Total stockholders' equity....................................        138,099          129,627
                                                                     -------------    -------------
    Total liabilities and stockholders' equity.................... $      152,948   $      145,136
                                                                     =============    =============`

See accompanying notes to condensed consolidated financial statements

---





SBS Technologies, Inc. and
Subsidiaries
Consolidated Statements of Operations
Thousands (except per share amounts)
(Unaudited)

`Three Months Ended         Nine Months Ended
                                                                   March 31,                 March 31,
                                                            -----------------------   -----------------------
                                                                2005         2004         2005         2004
                                                            ----------   ----------   ----------   ----------
Sales.................................................... $    37,334  $    36,592  $   114,464  $    95,672
Cost of sales............................................      21,465       18,888       63,544       49,001
                                                            ----------   ----------   ----------   ----------
     Gross profit........................................      15,869       17,704       50,920       46,671

Selling, general and administrative expense..............       8,900        8,307       26,044       23,924
Research and development expense.........................       6,556        5,471       18,163       15,029
Employee severance and consolidation costs...............          --          165           --        2,495
Amortization of intangible assets........................         439          538        1,407        1,638
                                                            ----------   ----------   ----------   ----------
     Operating income (loss).............................         (26)       3,223        5,306        3,585
                                                            ----------   ----------   ----------   ----------
Interest and other income, net...........................         265           95          610          541
Foreign exchange gains (losses)..........................         159          (38)        (285)        (320)
                                                            ----------   ----------   ----------   ----------
                                                                  424           57          325          221
                                                            ----------   ----------   ----------   ----------
Income before income taxes...............................         398        3,280        5,631        3,806
Income tax expense.......................................         142        1,148        1,974        1,332
                                                            ----------   ----------   ----------   ----------
Net income............................................... $       256  $     2,132  $     3,657  $     2,474
                                                            ==========   ==========   ==========   ==========

Earnings per share data:
 Net income per share.................................... $      0.02  $      0.14  $      0.24  $      0.16
                                                            ==========   ==========   ==========   ==========
 Net income per share - assuming dilution................ $      0.02  $      0.14  $      0.23  $      0.16
                                                            ==========   ==========   ==========   ==========



Weighted average shares outstanding used
  in net income per share computation....................      15,587       15,162       15,541       15,083
                                                            ==========   ==========   ==========   ==========
Weighted average shares outstanding used in net
  income per share - assuming dilution computation.......      15,763       15,581       15,732       15,369
                                                            ==========   ==========   ==========   ==========`

See accompanying notes to condensed consolidated financial statements

---





SBS Technologies, Inc. and
Subsidiaries
Consolidated Statement of Changes in Stockholders' Equity
For Nine Months Ended March 31, 2005
Thousands (except share amounts)
(Unaudited)

`Accumulated
                                                                                       other                   Total
                                                   Common Stock           Unearned     compre-                 stock-      Compre-
                                                -----------------------    compen-    hensive     Retained    holders'    hensive
                                                  Shares       Amount      sation      income     earnings     equity      income
                                                -----------   ---------   ---------   ---------   ---------   ---------   ---------

Balances at June 30, 2004...................... 15,496,949  $   96,601  $      (29) $    1,891  $   31,164  $  129,627
Exercise of stock options......................    139,730       1,345          --          --          --       1,345
Stock-based compensation.......................         --          --         131          --          --         131
Restricted stock awards issued to directors....      6,250         248        (248)         --          --          --
Income tax benefit from stock option exercises.         --         143          --          --          --         143
Net income.....................................         --          --          --          --       3,657       3,657  $    3,657
Other comprehensive income:
  Foreign currency translation adjustments.....         --          --          --       3,196          --       3,196       3,196
                                                                                                                          ---------
Comprehensive income...........................                                                                         $    6,853
                                                -----------   ---------   ---------   ---------   ---------   ---------   =========
Balances at March 31, 2005..................... 15,642,929  $   98,337  $     (146) $    5,087  $   34,821  $  138,099
                                                ===========   =========   =========   =========   =========   =========`

See accompanying notes to condensed consolidated financial statements

---





SBS Technologies, Inc. and
Subsidiaries
Consolidated Statements of Cash Flows
Thousands
(Unaudited)

`Nine months ended
                                                                            March 31,
                                                                     -------------------------
                                                                         2005          2004
                                                                     -----------   -----------
Cash flows from operating activities:
  Net income...................................................... $      3,657  $      2,474
  Adjustments to reconcile net income to net
    cash provided by operating activities:
      Depreciation and amortization...............................        4,338         4,601
      Bad debt expense............................................           69            17
      Deferred income taxes.......................................         (122)          455
      Income tax benefit from stock option exercises..............          143           237
      (Gain) loss on disposition of assets........................           (7)            3
      Non-cash compensation.......................................           --            80
      Foreign exchange (gains) losses.............................          285           320
      Stock-based compensation....................................          131            95
      Changes in assets and liabilities:
        Receivables...............................................          655          (579)
        Inventories...............................................           71        (9,734)
        Income taxes..............................................        3,019         1,624
        Prepaid expenses and other................................       (1,160)         (304)
        Accounts payable..........................................       (3,720)        1,072
        Accrued representative commissions........................         (249)          328
        Accrued compensation......................................          322          (638)
        Accrued severance and consolidation costs.................         (329)          796
        Other liabilities.........................................          691          (815)
                                                                     -----------   -----------
        Net cash provided by operating activities.................        7,794            32

Cash flows from investing activities:
  Acquisition of property and equipment...........................       (2,596)       (2,373)
  Purchase of license agreement...................................          (27)           --
  Other...........................................................           --           104
                                                                     -----------   -----------
        Net cash used by investing activities.....................       (2,623)       (2,269)

Cash flows from financing activities:
  Proceeds from exercise of stock options.........................        1,345         2,330
                                                                     -----------   -----------
        Net cash provided by financing activities.................        1,345         2,330
Effect of exchange rate changes on cash...........................          555           268
                                                                     -----------   -----------
        Net change in cash and cash equivalents...................        7,071           361
Cash and cash equivalents at beginning of period..................       47,943        37,130
                                                                     -----------   -----------
Cash and cash equivalents at end of period........................ $     55,014  $     37,491
                                                                     ===========   ===========
Supplemental disclosure of cash flow information:
  Income taxes received, net...................................... $        113  $        118
                                                                     ===========   ===========`

See accompanying notes to condensed consolidated financial statements.

---



SBS Technologies, Inc. and
Subsidiaries
Notes to Condensed Consolidated Financial Statements
March 31, 2005
(Unaudited)

1)	Summary of Significant
Accounting Policies



The accounting policies as set forth in SBS Technologies,
Inc.'s (SBS or the Company) Annual Report on Form 10-K for the year ended June
30, 2004 have been adhered to in preparing the accompanying interim condensed
consolidated financial statements.  The preparation of financial statements in
conformity with accounting principles generally accepted in the United States
requires management to make estimates and assumptions that affect the amounts
reported in the condensed consolidated financial statements and accompanying
notes. Actual results could differ from these estimates.  These statements are
unaudited but include all adjustments, consisting of normal recurring
adjustments, that SBS considers necessary for a fair presentation of the
financial position, results of operations, and cash flows for such interim
periods.  Results for such interim periods are not necessarily indicative of
results for the full fiscal year 2005 or any other future periods.



Stock Based Compensation

The Company applies the intrinsic-value-based method of
accounting prescribed by Accounting Principles Board (APB) Opinion No. 25,
Accounting for Stock Issued to Employees, and related interpretations, to
account for its fixed-plan stock options. Under this method, compensation
expense is recorded on the date of grant only if the current market price of the
underlying stock exceeds the exercise price. Substantially all stock-based
compensation reflected in reported net income relates to restricted stock award
grants to members of the Company's Board of Directors, as all employee stock
options granted under the Company's stock option plans had an exercise price
equal to the market value of the underlying common stock on the grant date.
Statement of Financial Accounting Standards No. 123, Accounting for Stock-Based Compensation(SFAS 123), established accounting and disclosure requirements using a
fair-value-based method of accounting for stock-based employee compensation
plans. As permitted by SFAS 123, the Company has elected to continue to apply
the intrinsic-value-based method of accounting described above and has adopted
only the disclosure requirements of SFAS 123.  The following table illustrates
the effect on net income and net income per common share if the Company had
applied the fair value recognition provisions of SFAS 123 to stock-based
employee compensation.

`Three Months Ended       Nine Months Ended
                                                                           March 31,               March 31,
                                                                     ---------------------   ---------------------
Thousands (except per share amounts)                                     2005        2004        2005        2004
                                                                     ---------   ---------   ---------   --------- 
Net income, as reported........................................... $      256  $    2,132  $    3,657  $    2,474
Stock-based compensation, net of tax effects:
     Add: compensation included in reported net income............         38          21          80          58
     Deduct: compensation determined under fair value method......       (878)       (590)     (1,940)     (1,202)
                                                                     ---------   ---------   ---------   ---------
Pro forma net income (loss)....................................... $     (584) $    1,563  $    1,797  $    1,330
                                                                     =========   =========   =========   =========
Net income per common share - as reported......................... $     0.02  $     0.14  $     0.24  $     0.16
                                                                     =========   =========   =========   =========
Net income (loss) per common share - pro forma.................... $    (0.04) $     0.10  $     0.12  $     0.09
                                                                     =========   =========   =========   =========
Net income per common share assuming dilution - as reported....... $     0.02  $     0.14  $     0.23  $     0.16
                                                                     =========   =========   =========   =========
Net income (loss) per common share assuming dilution - pro forma.. $    (0.04) $     0.10  $     0.11  $     0.09
                                                                     =========   =========   =========   =========`

On April 21, 2005, in response to SFAS No. 123 (Revised
2004), Share Based Payment, issued in December 2004, the Board of
Directors of SBS approved the acceleration of the vesting of all outstanding
unvested stock options with an exercise price greater than $9.22 (the
Acceleration).  The Acceleration was effective on April 21, 2005, and resulted
in the immediate vesting of 1,299,258 stock options.  Under APB 25, the
Acceleration will not result in recognition of stock-based compensation expense
because the exercise price for all stock options subject to the Acceleration was
in excess of the then current market price.

---



SBS Technologies, Inc. and
Subsidiaries
Notes to Condensed Consolidated Financial Statements - Continued
March 31, 2005
(Unaudited)

2)	Receivables, net



Receivables, net consist of the following:

`March 31,      June 30,
Thousands                                        2005          2004
                                             -----------   -----------   
Accounts receivable....................... $     23,918  $     24,335
Less allowance for doubtful accounts......         (343)         (559)
                                             -----------   -----------
                                           $     23,575  $     23,776
                                             ===========   ===========`

3)	Inventories



Inventories consist of the following:

`March 31,      June 30,
Thousands                                        2005          2004
                                             -----------   -----------   
Raw materials............................. $     12,870  $     11,444
Work in process...........................        3,672         6,596
Finished goods............................       10,388         8,209
                                             -----------   -----------
                                           $     26,930  $     26,249
                                             ===========   ===========`

4)	Goodwill and Intangible Assets



The Company completed the required annual goodwill impairment
analysis for the fiscal year ended June 30, 2004, as of April 1, 2004, and the
estimated fair value of goodwill was determined to be in excess of its carrying
value, indicating the underlying goodwill was not impaired at that date.



Changes in the carrying amount of goodwill for the nine
months ended March 31, 2005 are as follows:



`Total Goodwill by Operating Segment
Thousands                                     Americas       Europe         Total
                                             -----------   -----------   -----------  
Balance at June 30, 2004.................. $      3,416  $     13,318  $     16,734
Foreign currency translation adjustments .          312           888         1,200
                                             -----------   -----------   -----------
Balance at March 31, 2005................. $      3,728  $     14,206  $     17,934
                                             ===========   ===========   ===========`

---



SBS Technologies, Inc. and
Subsidiaries
Notes to Condensed Consolidated Financial Statements - Continued
March 31, 2005
(Unaudited)

The following table discloses information regarding the
carrying amounts and associated accumulated amortization for intangible assets
subject to amortization.

`Amortized Intangible Assets
------------------------------------------------------------------------------------
                                    Estimated      Gross                      Net
                                      useful     carrying    Accumulated   carrying
 Thousands                             life       amount     amortization   amount
                                    ----------   ---------   -----------   ---------
As of March 31, 2005                
  Core developed technology........ 2 - 7 yrs  $    9,826  $      7,525  $    2,301
  License agreements............... 2 - 5 yrs       2,452         2,226         226
  Covenant not to compete.......... 3 - 5 yrs       2,988         2,125         863
  Other intangibles................ 8 - 17 yrs        377           203         174
                                                 ---------   -----------   ---------
        Total                                  $   15,643  $     12,079  $    3,564
                                                 =========   ===========   =========
As of June 30, 2004                 
  Core developed technology........ 2 - 7 yrs  $    9,724  $      6,767  $    2,957
  License agreements............... 2 - 5 yrs       2,425         1,781         644
  Covenant not to compete.......... 3 - 5 yrs       2,852         1,890         962
  Other intangibles................ 8 - 17 yrs        368           167         201
                                                 ---------   -----------   ---------
        Total......................            $   15,369  $     10,605  $    4,764
                                                 =========   ===========   =========`

The net change in the gross carrying amount and accumulated
amortization balances reflected above are the result of foreign currency
translation adjustments.  Accordingly, the net change in accumulated
amortization for the period does not agree to amortization expense reported in
the accompanying statements of operations for the period.  The following table
summarizes estimated amortization expense for future periods as
follows:

`Estimated amortization expense:                      Thousands   
  Remainder of fiscal year ending June 30, 2005... $      440
  For the fiscal years ending:
      June 30, 2006...............................      1,352
      June 30, 2007...............................      1,218
      June 30, 2008...............................        508
      June 30, 2009 and thereafter................         46
                                                     ---------
                                                   $    3,564
                                                     =========`

5)	Product Warranty Liability

The Company's customers receive a warranty, generally for
a period of two years, upon purchase of products.  The Company accrues estimated
costs to repair or replace potentially defective products when products are
shipped and revenue is recognized. Estimated warranty costs are based on prior
warranty costs for substantially similar products.  The following table presents
the activity in the Company's product warranty liability for the nine months
ended March 31:

`2005        2004
Thousands                                            ---------   ---------   
Balance at beginning of period.................... $      599  $      548
  Estimated warranty costs for product sales......        648         704
  Adjustments to settle warranty activity.........       (543)       (649)
                                                     ---------   ---------
Balance at end of period.......................... $      704  $      603
                                                     =========   =========`



---



SBS Technologies, Inc. and
Subsidiaries
Notes to Condensed Consolidated Financial Statements - Continued
March 31, 2005
(Unaudited)

6)	Revolving Line of Credit

On March 30, 2005, SBS entered into a revolving line of
credit agreement (Credit Agreement) with Wells Fargo Bank National Association.
The Credit Agreement provides for borrowings for working capital and general
corporate purposes of up to $20 million and any outstanding borrowings are due
and payable in full on March 28, 2006.  As of March 31, 2005, there were no
borrowings outstanding under the terms of the credit agreement.



7)	Earnings Per Share



Net income per share is based on weighted average shares
outstanding.  Net income per share - assuming dilution includes the dilutive
effects of potential common shares outstanding during the period.



`Three Months Ended        Nine Months Ended
                                                           March 31,                March 31,
                                                     ---------------------   ---------------------
Thousands (except per share amounts)                     2005        2004        2005        2004
                                                     ---------   ---------   ---------   --------- 
Net income........................................ $      256  $    2,132  $    3,657  $    2,474
                                                     =========   =========   =========   ========= 
Net income per share:                                                                              
  Weighted-average common shares outstanding
    used in earnings per share computations.......     15,587      15,162      15,541      15,083
                                                     =========   =========   =========   =========
  Net income per share............................ $     0.02  $     0.14  $     0.24  $     0.16
                                                     =========   =========   =========   ========= 
Net income per share - assuming dilution:                                                          
  Weighted-average common shares outstanding
    used in earnings per share computations.......     15,763      15,581      15,732      15,369
                                                     =========   =========   =========   =========
  Net income per share - assuming dilution........ $     0.02  $     0.14  $     0.23  $     0.16
                                                     =========   =========   =========   ========= 
Shares Used in Per Share Computations:                                                             
  Weighted average common shares outstanding......     15,587      15,162      15,541      15,083
  Incremental shares from assumed conversions -
    potential common shares ......................        176         419         191         286
                                                     ---------   ---------   ---------   ---------
  Shares used in computations - assuming dilution.     15,763      15,581      15,732      15,369
                                                     =========   =========   =========   =========`

For the three and nine month periods ended March 31, 2005,
options to purchase 1,815,393 and 1,637,212 shares of common stock,
respectively, were outstanding but were not included in the computation of
earnings per share - assuming dilution because the options' exercise prices were
greater than the average market price of the common shares.  For the three and
nine month periods ended March 31, 2004, options to purchase 998,591 and
1,650,682  shares of common stock, respectively, were outstanding but were not
included in the computation of earnings per share - assuming dilution because
the options' exercise prices were greater than the average market price of the
common shares.

---



SBS Technologies, Inc. and
Subsidiaries
Notes to Condensed Consolidated Financial Statements - Continued
March 31, 2005
(Unaudited)

8)	Comprehensive Income

Comprehensive income (loss) for the three and nine month
periods ended March 31, 2005 was ($2.3) million and 
$6.9 million, respectively.  Comprehensive income for the three and nine month
periods ended March 31, 2004 was $1.0 million and $4.5 million, respectively.
The difference between comprehensive income and net income was related to
foreign currency translation adjustments.



9)      	Segment Financial Data

The Company is engaged in the design, research,
development, integration and production of embedded computer products.  We
operate worldwide through two operating segments: the Americas Group and the
Europe Group.  Both the Americas Group and the Europe Group offer our complete
portfolio of embedded computer products to customers in the government,
commercial and communications end markets.  Each segment has management who
report directly to the Company's Chief Executive Officer and its own sales and
distribution channels.  The Americas Group consists of the Company's operations
based in the United States and Canada including the engineering, test, and
assembly activities in Albuquerque, New Mexico; Mansfield, Massachusetts;
Newark, California; Raleigh, North Carolina; St. Paul, Minnesota; and Waterloo,
Ontario, Canada; the manufacturing operations located in St. Paul, Minnesota;
and the sales and support activities based in Shenzhen, China.  The Europe Group
consists of the Company's operations based in Germany, which include the
engineering, test, assembly, and manufacturing activities located in Augsburg
and Mindelheim, Germany.



SBS measures the results of operations for segments (segment
profit (loss)) based on income before income taxes and prior to (a) the
allocation of corporate overhead expenses other than marketing costs, (b)
substantially all amortization associated with acquisitions and (c) interest
income and interest expense from our U.S. operations.  The accounting policies
used to measure segment profit (loss) are the same as those referred to in note 1.

`Americas     Europe      Corporate &
Thousands                                      Group       Group     Unallocated (1)    Total
                                             ---------   ---------   --------------   ---------
Three month periods ended March 31
  Gross sales......................  2005  $   24,759  $   17,258  $            --  $   42,017
  Inter-segment sales..............            (1,889)     (2,794)              --      (4,683)
                                             ---------   ---------   --------------   ---------
  Sales to external customers......        $   22,870  $   14,464  $            --  $   37,334

  Gross sales......................  2004  $   27,835  $   11,903  $            --  $   39,738
  Inter-segment sales..............            (1,585)     (1,561)              --      (3,146)
                                             ---------   ---------   --------------   ---------
  Sales to external customers......        $   26,250  $   10,342  $            --  $   36,592

  Segment profit (loss)............. 2005  $      183  $    3,043  $        (2,828) $      398
                                     2004  $    4,578  $    2,105  $        (3,403) $    3,280`

---



SBS Technologies, Inc. and
Subsidiaries
Notes to Condensed Consolidated Financial Statements - Continued
March 31, 2005
(Unaudited)

`Americas     Europe      Corporate &
Thousands                                      Group       Group     Unallocated (1)    Total
                                             ---------   ---------   --------------   ---------
Nine month periods ended March 31
Gross sales........................  2005  $   78,574  $   49,479  $            --  $  128,053
Inter-segment sales................            (5,231)     (8,358)              --     (13,589)
                                             ---------   ---------   --------------   ---------
Sales to external customers........        $   73,343  $   41,121  $            --  $  114,464

Gross sales........................  2004  $   74,102  $   30,454  $            --  $  104,556
Inter-segment sales................            (4,135)     (4,749)              --      (8,884)
                                             ---------   ---------   --------------   ---------
Sales to external customers........        $   69,967  $   25,705  $            --  $   95,672

Segment profit (loss)                2005  $    5,613  $    9,309  $        (9,291) $    5,631
                                     2004  $    8,058  $    5,481  $        (9,733) $    3,806

Total Assets
               As of March 31, 2005        $   34,115  $   37,215  $        81,618  $  152,948
                As of June 30, 2004        $   39,640  $   26,531  $        78,965  $  145,136`



|(1)The corporate and unallocated column includes
amounts for corporate items.  With regard to results of operations, corporate
and unallocated includes corporate overhead expenses other than corporate
marketing costs, interest income and interest expense from our U.S. operations,
and substantially all amortization associated with acquisitions.  Corporate
assets primarily include cash and cash equivalents from our U.S. operations,
deferred and current income tax assets, goodwill and intangible assets.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

10) 	Employee Severance and Consolidation Costs



On June 12, 2003, the Company announced the closure of
its Carlsbad, California facility and the consolidation of its manufacturing
operations into the Company's St. Paul, Minnesota facility, centralizing all
manufacturing in the United States to one facility.  The total employee
severance and consolidation costs incurred as a result of the consolidation were
approximately $3.6 million.  The total costs included employee severance and
related costs recorded over the remaining service period, consolidation costs
recorded as incurred, lease termination costs recorded on the cease use date
(all in accordance with SFAS 146), and leasehold improvement impairment charges
recorded as a result of the announcement in accordance with SFAS No. 144, Accounting for Impairment or Disposal of Long-
Lived Assets.

---



SBS Technologies, Inc. and
Subsidiaries
Notes to Condensed Consolidated Financial Statements - Continued
March 31, 2005
(Unaudited)

The following table summarizes the accounting for the
consolidation and closure of the Company's Carlsbad, California facility:



`Thousands
                                                    Employee       Lease
Activity during the nine months ended              severance and termination    Other
  March 31, 2004:                                  related costs   charge       costs      Total
------------------------------------------------   -----------   ----------   ---------  ---------
Balance at June 30, 2003........................ $        224  $        --  $       --  $     224

Nine months ended March 31, 2004
  Employee severance and consolidation costs.... $        470  $     1,495  $      530  $   2,495
  Cash payments.................................         (694)        (474)       (530)    (1,698)
                                                   -----------   ----------   ---------  ---------
Balance accrued at March 31, 2004............... $         --  $     1,021  $       --  $   1,021
                                                   ===========   ==========   =========  =========
                                                                                                  
Activity during the nine months ended
  March 31, 2005:
------------------------------------------------                                                  
Balance at June 30, 2004........................ $         --  $       870  $       --  $     870

Nine months ended March 31, 2005
  Cash payments.................................           --         (329)         --       (329)
                                                   -----------   ----------   ---------  ---------
Balance accrued at March 31, 2005............... $         --  $       541  $       --  $     541
                                                   ===========   ==========   =========  =========`

The lease termination charge, recorded on the cease use date
as a result of closure of the Company's Carlsbad, California facility,
represents the estimated fair value of the remaining future lease payments and
related obligations, net of estimated sublease income, over the term of the
lease.  The remaining costs represent primarily lease obligations expected to be
paid monthly through April 2006.







---



Item 2- Management's Discussion and Analysis of
Financial Condition and Results of Operations

For a description of SBS' critical accounting policies and an
understanding of the significant factors that influenced SBS' performance during
the three and nine months ended March 31, 2005 and 2004, this "Management's
Discussion and Analysis of Financial Condition and Results of Operations"
(MD&A) should be read in conjunction with the consolidated financial
statements, including the related notes, appearing in Item 1 of this Form 10-Q,
as well as our Annual Report on Form 10-K for the year ended June 30, 2004.

Company Overview

We design and build open-architecture embedded computer products that
enable OEMs to serve the government, commercial, and communications end markets.
Embedded computer products are put inside or made part of larger systems to
process information, control machines, move computer data between machines, and
interact with people.  The companies that use our products manufacture very
sophisticated, expensive devices, for example, MRI machines, flight simulators,
wireless networks, fighter jets and industrial robots.

The SBS product line is strategically focused on embedded computing, and we
serve almost all parts of the market.  We currently list more than 500 products
in the product section of our website, www.sbs.com.  We offer components like
I/O modules, bus adapters, carrier cards, system enclosures, FPGA boards and
single board computers, as well as network switches, blades and fully integrated
systems. Many of these products are available in ruggedized versions, which can
operate in conditions of extreme temperature, vibration, shock and humidity.

We serve a broad range of customers. We help our customers get to market
faster, more reliably and more economically, by providing a wide range of
standard and customized embedded computer products.  Our products have
application in diverse industries, including space and aviation,
telecommunications, military and government, transportation, telemetry,
robotics, networking, broadcasting, wireless communications and medical imaging.

We have grown because we understand our role in the embedded computing
process: we make components which are part of larger, more complicated devices.
As embedded computer applications expand, we broaden our product line to meet
our customers' needs and to attract new customers. We invest in technology and
customer service so that we can grow with our customers.

We have grown organically and through strategic acquisitions, acquiring
companies that supplement our core competencies - a pattern we expect to
continue. Our organic growth is driven by adding new products, improving
existing products through our research and development program, and attracting
new customers with our products and service. We also completed eleven
acquisitions between 1992 and March 2005 that broadened our product offerings
and our customer base.

Executive Summary

Although our financial results for the past quarter were below our
original expectations, our nine months sales are up 20% over the first nine
months of last fiscal year and our nine month book-to-bill ratio is 1.02 to 1.
Sales for the quarter were below our
original expectationsdue to a decrease in sales to key customers in the
semiconductor manufacturing equipment industry, and softness in the Company's
quick-turn, short lead time business.  Also, several government programs that we
anticipated to start production in this fiscal year continue to be delayed.
Additionally, continued sales of lower margin, production business, competitive
pricing primarily driven by commercial and communications customers, and the
softness in our higher margin, quick-turn business lowered gross margin as a
percentage of sales.

During the quarter and nine months ended March 31, 2005:

- Sales for the quarter were $37.3 million and sales for the nine months were
$114.5 million;

On a sequential basis, total sales decreased 12%, compared to $42.2 million
in sales for the quarter ended
December 31, 2004.  Sales for the nine months ended March 31, 2005 increased 20%
from the $95.7 million in sales for the same period of the prior fiscal
year.

- Net income for the quarter was $256,000 and net income for the nine months
was $3.7 million.  Net income per share - assuming dilution for the quarter was
$0.02, compared to $0.14 for the comparable period of the prior year.  Net
income per share - assuming dilution for the nine months was $0.23, compared to
$0.16 for the comparable period of the prior year.

Included in the results for the quarter and nine months ended March 31, 2004
were employee severance and consolidation costs associated with the closure of
the Carlsbad, California facility of approximately $0.2 million and

---

$2.5 million, respectively, which negatively impacted net income per common share -
assuming dilution by ($0.01) and ($0.11) on an after tax basis.

- Customer orders received and booked during the quarter and nine months were
$36.8 million and $116.3 million, respectively.  This resulted in a book-to-bill
ratio of .99 to 1 for the quarter and a nine-month book-to-bill ratio of 1.02 to 1.

Book-to-bill ratio represents the net value of customer orders received
and booked each period divided by total sales.

- Order backlog was $45.1 million as of March 31, 2005, compared to $44.4
million as of March 31, 2004 and $45.9 million for the preceding quarter ended
December 31, 2004;

Order backlog represents customer orders that have been contracted for
future delivery. Accordingly, these orders have not yet been recognized as
revenue, but represent potential future revenue.

- We achieved five design wins during the quarter and a total of 21 design
wins for the first three quarters of this fiscal year.

Our business development efforts in all markets continue to show an increase
in opportunities, but these opportunities are taking longer than expected to
turn into design wins and then into production.

Each reported design win represents an initial purchase order of a minimum
of $100,000 and is forecasted to produce a minimum of $500,000 in sales annually
when in production.

By end market, the design wins included three in the government market,
one in the commercial market and one in the communications market.

- For the quarter ended March 31, 2005, as a percentage of total sales, sales
to one communications customer, Ericsson, represented 17%; and sales to one
commercial customer, Applied Materials, represented 8%.  No other customer
represented more than 5% of sales.

Financial Highlights

Selected financial highlights during the three and nine month periods
ended March 31, 2005 compared to the three and nine month periods ended March
31, 2004 and the quarter ended December 31, 2004 follows:

`Three Months Ended                     Nine Months Ended
                          ----------------------------------------------   ---------------------------
                                 March 31,                                        March 31,
Thousands (except         -------------------    %      Dec. 31,    %      -------------------    %
  per share amounts)          2005       2004 change      2004   change        2005       2004 change
                          --------   -------- -------   -------- -------   --------   -------- ------- 
Sales.................. $  37,334  $  36,592     2.0% $  42,246   -11.6% $ 114,464  $  95,672    19.6%
                          ========   ========           ========           ========   ========

Net income............. $     256  $   2,132   -88.0% $   2,156   -88.1% $   3,657  $   2,474    47.8%
                          ========   ========           ========           ========   ========

Net income per share
  - assuming dilution.. $    0.02  $    0.14          $    0.14          $    0.23  $    0.16
                          ========   ========           ========           ========   ========`

See detailed analysis of the financial results below.

---



Results of Operations

(references to fiscal 2005 and fiscal 2004 relate to
interim periods of the fiscal years ending on June 30)

The following table sets forth for the periods
indicated certain operating data as a percentage of sales:

`Three Months Ended         Nine Months Ended
                                                                   March 31,                 March 31,
                                                            -----------------------   -----------------------
                                                                2005         2004         2005         2004
                                                            ----------   ----------   ----------   ----------
Sales....................................................       100.0 %      100.0 %      100.0 %      100.0 %
Cost of sales............................................        57.5 %       51.6 %       55.5 %       51.2 %
                                                            ----------   ----------   ----------   ----------
     Gross profit........................................        42.5 %       48.4 %       44.5 %       48.8 %

Selling, general and administrative expense..............        23.8 %       22.7 %       22.8 %       25.0 %
Research and development expense.........................        17.6 %       15.0 %       15.9 %       15.7 %
Employee severance and consolidation costs...............          -- %        0.5 %         -- %        2.6 %
Amortization of intangible assets........................         1.2 %        1.4 %        1.2 %        1.8 %
                                                            ----------   ----------   ----------   ----------
     Operating income (loss).............................        (0.1)%        8.8 %        4.6 %        3.7 %
                                                            ----------   ----------   ----------   ----------
Interest and other income, net...........................         0.7 %        0.3 %        0.5 %        0.6 %
Foreign exchange gains (losses)..........................         0.5 %       (0.1)%       (0.2)%       (0.3)%
                                                            ----------   ----------   ----------   ----------
                                                                  1.2 %        0.2 %        0.3 %        0.3 %
                                                            ----------   ----------   ----------   ----------
Income before income taxes...............................         1.1 %        9.0 %        4.9 %        4.0 %
Income tax expense.......................................         0.4 %        3.2 %        1.7 %        1.4 %
                                                            ----------   ----------   ----------   ----------
Net income...............................................         0.7 %        5.8 %        3.2 %        2.6 %
                                                            ==========   ==========   ==========   ==========`

Three and Nine Month Periods Ended March 31, 2005 compared to the Three
and Nine Month Periods Ended March 31, 2004

Sales

Our total sales during the three and nine month periods ended March 31, 2005
compared to the three and nine month periods ended March 31, 2004 and the
quarter ended December 31, 2004 follows:

`Three Months Ended                     Nine Months Ended
                          ----------------------------------------------   ---------------------------
                                 March 31,                                        March 31,
                          -------------------    %      Dec. 31,    %      -------------------    %
Thousands                     2005       2004 change      2004   change        2005       2004 change
                          --------   -------- -------   -------- -------   --------   -------- ------- 
Sales.................. $  37,334  $  36,592     2.0% $  42,246   -11.6% $ 114,464  $  95,672    19.6%
                          ========   ========           ========           ========   ========`

For the quarter ended March 31, 2005, sales increased when compared to the
same period of the prior fiscal year as a result of increased sales of lower
margin, production rate business to Ericsson, and approximately $734,000
resulting from the impact of a weakening U.S. dollar on the translation of our
Europe Group financial statements.  These increases were offset by a decrease in
sales to key customers in the semiconductor manufacturing equipment industry,
and softness in the Company's quick-turn, short lead time business.  On a
sequential basis, sales decreased $4.9 million compared to sales for the
preceding quarter ended December 31, 2004 for the same reasons.

For the nine months ended March 31, 2005, sales increased $18.8 million as a
result of increased sales of lower margin, production rate business to Applied
Materials and Ericsson compared to prior year levels of approximately $14
million.  The increase in sales for the nine months also includes approximately
$2.7 million resulting from the impact of a weakening U.S.

---

dollar on the translation of our Europe Group financial statements.

Sales by end market for the three and nine month periods ended March 31, 2005
compare to the three and nine month periods ended March 31, 2004 and the prior
fiscal quarter ended December 31, 2004 as indicated below:

`SALES BY END MARKET
                                             (dollars in thousands)
                             Mar. 31,   % of     Mar. 31,   % of     Dec. 31,   % of
                               2005     total      2004     total      2004     total
                             --------- -------   --------- -------   --------- -------
Three months ended:
  Government.............. $   17,400      47% $   17,806      49% $   18,805      45%
  Commercial..............      9,052      24%     11,676      32%     12,000      28%
  Communications..........     10,882      29%      7,110      19%     11,441      27%
                             --------- -------   --------- -------   --------- -------
Total..................... $   37,334     100% $   36,592     100% $   42,246     100%
                             ========= =======   ========= =======   ========= =======

                             Mar. 31,   % of     Mar. 31,   % of
                               2005     total      2004     total
                             --------- -------   --------- -------                    
Nine months ended:
  Government.............. $   51,504      45% $   48,864      51%
  Commercial..............     31,291      27%     29,203      31%
  Communications..........     31,669      28%     17,605      18%
                             --------- -------   --------- -------
Total..................... $  114,464     100% $   95,672     100%
                             ========= =======   ========= =======`

For the three months ended March 31, 2005, sales to government customers
decreased 2.3%, sales to commercial customers decreased 22.5% and sales to
communications customers increased 53.0%, all compared to the comparable period
of the prior fiscal year.  On a sequential basis, sales to government customers
decreased 7.5%, sales to commercial customers decreased 24.6% and sales to
communications customers decreased 4.9%, all compared to the preceding quarter
ended December 31, 2004.  For the nine months ended March 31, 2005, sales to
government customers increased 5.4%, sales to commercial customers increased
7.2%, and sales to communications customers increased 79.9%, all compared to the
comparable period of the prior fiscal year.

Looking forward, we believe the business conditions we experienced in the
third quarter will continue through the balance of our fiscal year.  Based on
our forecasts, current backlog, and timing of new orders, we expect sales for
the fourth quarter ending June 30, 2005 to be between $35 million and
$37 million; however, actual results may vary.  For the fiscal year ending
June 30, 2005, we expect our sales will be approximately $150 million; however,
actual results may vary.

Gross Profit

Gross profit during the three and nine month periods ended March 31, 2005
compared to the three and nine month periods ended March 31, 2004 and the
quarter ended December 31, 2004 follows:

`Three months ended                        Nine Months Ended
                             -----------------------------------------------------   -------------------------------
                                    March 31,                                               March 31,
                             ---------------------    Incr/    Dec. 31,     Incr/    ---------------------    Incr/
Thousands                        2005        2004    (decr)      2004      (decr)        2005        2004    (decr)
                             ---------   ---------   -------   ---------   -------   ---------   ---------   -------
Gross profit.............. $   15,869  $   17,704  $ (1,835) $   19,207  $ (3,338) $   50,920  $   46,671  $  4,249
                             =========   =========   =======   =========   =======   =========   =========   =======
Gross profit as a percent
  of sales................       42.5%       48.4%                 45.5%                 44.5%       48.8%
                             =========   =========             =========             =========   =========`

---



Gross profit as a percent of sales for the quarter ended March 31, 2005 was
42.5%, compared to 48.4% for the third quarter of the prior fiscal year, and
45.5% for the preceding quarter.  Further, gross profit as a percent of sales
for the nine months ended March 31, 2005 was 44.5%, compared to 48.8% for the
same period of the prior fiscal year.  The continued growth in sales of lower
margin, production rate business, primarily driven by communications and
commercial customers, competitive pricing primarily from commercial and
communications customers, and the softness in our higher margin, quick-turn
business has lowered our overall gross margin as a percentage of sales.  We
believe the business conditions we experienced in the third quarter will
continue through the balance of our fiscal year; however, actual results may
vary.

Selling, General and Administrative Expense

Selling, general and administrative (SG&A) expense during the three and
nine month periods ended March 31, 2005 compared to the three and nine month
periods ended March 31, 2004 and the preceding quarter follows:

`Three months ended                        Nine Months Ended
                             -----------------------------------------------------   -------------------------------
                                    March 31,                                               March 31,
                             ---------------------    Incr/    Dec. 31,     Incr/    ---------------------    Incr/
Thousands                        2005        2004    (decr)      2004      (decr)        2005        2004    (decr)
                             ---------   ---------   -------   ---------   -------   ---------   ---------   -------
SG&A expense.............. $    8,900  $    8,307  $    593  $    9,121  $   (221) $   26,044  $   23,924  $  2,120
                             =========   =========   =======   =========   =======   =========   =========   =======

As a percent of sales.....       23.8%       22.7%                 21.6%                 22.8%       25.0%
                             =========   =========             =========             =========   =========`

The increase in SG&A expense for the three and nine months of fiscal 2005
compared to the same periods of the prior fiscal year is primarily the result of
general wage increases effective October 1, 2004, selective staff increases to
support growth, and the timing of certain discretionary expenses.  For these
reasons, SG&A expense for the three months ended March 31, 2005 increased to
23.8% compared to 22.7% for the same period of the prior fiscal year.  In
addition, SG&A expense as a percent of sales for the nine months of fiscal
2005 was 22.8%, compared to 25.0% in the prior fiscal year, as the increase in
sales more than offset the increase in SG&A expense.

Research and Development Expense

Research and development (R&D) expense during the three and nine month
periods ended March 31, 2005 compared to the three and nine month periods ended
March 31, 2004 and the preceding quarter follows:

`Three months ended                        Nine Months Ended
                             -----------------------------------------------------   -------------------------------
                                    March 31,                                               March 31,
                             ---------------------    Incr/    Dec. 31,     Incr/    ---------------------    Incr/
Thousands                        2005        2004    (decr)      2004      (decr)        2005        2004    (decr)
                             ---------   ---------   -------   ---------   -------   ---------   ---------   -------
R&D expense............... $    6,556  $    5,471  $  1,085  $    6,102  $    454  $   18,163  $   15,029  $  3,134
                             =========   =========   =======   =========   =======   =========   =========   =======

As a percent of sales.....       17.6%       15.0%                 14.4%                 15.9%       15.7%
                             =========   =========             =========             =========   =========`

Increasing our intellectual property is a key element of our growth strategy.
During the quarter ended March 31, 2005, we introduced 12 new products as we
continue to implement this segment of our strategy.  Consistent with SG&A,
the increase in R&D expense for the three and nine month periods of fiscal
2005 compared to the same periods of the prior fiscal year and the preceding
quarter is primarily the result of general wage increases effective October 1,
2004, our recent investment in additional engineering resources to serve the
government and international markets, and the timing of outside development
costs associated with our product development efforts.  For these reasons,
R&D expense for the three months ended March 31, 2005 increased to 17.6%
compared to 15.0% for the same period of the prior fiscal year.  R&D expense
as a percent of sales for the nine months of fiscal 2005 was consistent with the
same period of the prior fiscal year as the increase in sales offset the
increase in R&D expense.

---



Employee Severance and Consolidation Costs

We recorded no employee severance and consolidation costs during the three
and nine month periods ended March 31, 2005.

On June 12, 2003, we announced that we would be closing our Carlsbad,
California facility and consolidating its manufacturing operations into our St.
Paul, Minnesota facility, centralizing all manufacturing in the United States to
one facility. This consolidation was completed in August, 2003.  As a result of
these actions, we recorded employee severance and consolidation costs totaling
$165,000 and $2.5 million during the three and nine month periods ended March
31, 2004.  The following table summarizes the accounting for the consolidation
and closure of the Company's Carlsbad, California facility:

`Thousands
                                                    Employee       Lease
Activity during the nine months ended              severance and termination    Other
  March 31, 2004:                                  related costs   charge       costs      Total
------------------------------------------------   -----------   ----------   ---------  ---------
Balance at June 30, 2003........................ $        224  $        --  $       --  $     224

Nine months ended March 31, 2004
  Employee severance and consolidation costs.... $        470  $     1,495  $      530  $   2,495
  Cash payments.................................         (694)        (474)       (530)    (1,698)
                                                   -----------   ----------   ---------  ---------
Balance accrued at March 31, 2004............... $         --  $     1,021  $       --  $   1,021
                                                   ===========   ==========   =========  =========
                                                                                                  
Activity during the nine months ended
  March 31, 2005:
------------------------------------------------                                                  
Balance at June 30, 2004........................ $         --  $       870  $       --  $     870

Nine months ended March 31, 2005
  Cash payments.................................           --         (329)         --       (329)
                                                   -----------   ----------   ---------  ---------
Balance accrued at March 31, 2005............... $         --  $       541  $       --  $     541
                                                   ===========   ==========   =========  =========`

Amortization of Intangible Assets

For the three and nine months ended March 31, 2005, amortization of
intangible assets was $439,000 and $1.4 million, respectively, compared to
$538,000 and $1.6 million for the comparable periods of fiscal 2004.
Amortization expense for the nine months ended March 31, 2005 includes a charge
of approximately $85,000 recorded in connection with the write-down of the
remaining unamortized balance of a prepaid license agreement for products that
SBS determined, during the second quarter, would no longer be marketed.  Total
amortization expense decreased in fiscal 2005 from fiscal 2004 levels primarily
as a result of the completion of the amortization of certain purchased
identifiable intangible assets recorded in connection with an asset acquisition
in March 2002.

Interest and Other Income, Net

Net interest and other income of $265,000 and $610,000 for the three and nine
months ended March 31, 2005 represented an increase from fiscal 2004 levels,
excluding interest income in connection with income tax refunds of payments made
in prior periods of approximately $250,000 received in September 2003, due
primarily to increased cash balances.

Foreign Exchange Gains (Losses)

Foreign exchange gains (losses) in fiscal 2005, which represent primarily
realized and unrealized losses on transactions denominated in non-functional
currencies, decreased from fiscal 2004 levels primarily as a result of changes
in the Euro to U.S. dollar exchange rates during the period.

---



Income Tax Expense

We record income tax expense based on our estimated worldwide effective tax
rates for the respective fiscal years.  For fiscal 2005 and 2004, our estimated
worldwide effective tax rate was approximately 35.0%.  Our estimated worldwide
effective income tax rate incorporates a projected mix of pre-tax income from
domestic and foreign sources, together with benefits from certain income tax
planning strategies, including benefits from foreign sales and research and
experimentation tax credits.

Our estimated annual effective tax rate for fiscal 2005 does not include any
impact of the recently enacted Americans Jobs Creation Act of 2004 (the Act),
which was signed into law by the U.S. President in October 2004.  We continue to
evaluate the impact of several provisions of the Act on our annual worldwide
effective tax rate.

In assessing the realizability of our deferred tax assets, management
considers projected future sources of taxable income together with tax planning
strategies. A valuation allowance has been established that applies to certain
U.S. State operating loss and tax credit carryforwards that, in the opinion of
management, may expire unused due to uncertainty regarding future taxable
income. Based on SBS'historical taxable transactions, the timing of the reversal of existing
temporary differences, and the evaluation of tax planning strategies, management
believes it is more likely than not that SBS'future taxable income will be sufficient to realize
the benefit of the remaining deferred tax assets existing at March 31, 2005.

We generally do not record deferred income taxes on the undistributed
earnings of our foreign subsidiaries in accordance with the indefinite reversal
criterion in APB Opinion No. 23, "Accounting for Income Taxes -
Special Areas", because we currently do not expect those unremitted
earnings to reverse and become taxable in the foreseeable future.  Upon
distribution of these earnings, which amounted to approximately $26.4 million at
June 30, 2004, we may be subject to U.S. income taxes and foreign withholding
taxes.  It is not practical, however, to estimate the amount of taxes that may
be payable on the eventual remittance of these earnings.

Earnings Per Share

For the three and nine months ended March 31, 2005 (fiscal 2005), net income
per common share and net income per common share - assuming dilution were $0.02
and $0.23, respectively.  This compares to net income per common share and net
income per common share - assuming dilution of $0.14 and $0.16 for the
comparable periods of fiscal 2004 ended March 31, 2004.  Fiscal 2004 results
include employee severance and consolidation costs of approximately $165,000 and
$2.5 million, respectively, which negatively impacted earnings per common share
- assuming dilution by approximately $(0.01) and $(0.11) on an after tax
basis.

Review of Business Segments

We are engaged in the design, research, development, integration and
production of embedded computer products.  We operate worldwide through two
operating segments: the Americas Group and the Europe Group.  Both the Americas
Group and the Europe Group offer our complete portfolio of embedded computer
products to customers in the government, commercial and communications end
markets.  Each segment has management who report directly to the Company's Chief
Executive Officer and its own sales and distribution channels.  The Americas
Group consists of our operations based in the United States and Canada,
including the engineering, test, and assembly activities in Albuquerque, New
Mexico; Mansfield, Massachusetts; Newark, California; Raleigh, North Carolina;
St. Paul, Minnesota; and Waterloo, Ontario, Canada; the manufacturing operations
located in St. Paul, Minnesota; and the sales and support activities based in
Shenzhen, China.  The Europe Group consists of our operations based in Germany,
which include the engineering, test, assembly, and manufacturing activities
located in Augsburg and Mindelheim, Germany.

The following is a discussion of sales to external customers and segment
profit for each reportable segment.  We measure the results of operations for
segments (Segment Profit) based on income before income taxes and before:

- the allocation of corporate overhead expenses other than marketing
costs;
- substantially all amortization expense associated with acquisitions; and
- interest income and interest expense from our U.S. operations.

---



Americas Group

`Three Months Ended                   Nine Months Ended
                                  -------------------------------------------------   -----------------------------
                                         March 31,                                           March 31,
                                  ---------------------    %      Dec. 31,     %      ---------------------    %
Thousands                             2005        2004  change      2004    change        2005        2004  change
                                  ---------   --------- -------   --------- -------   ---------   --------- -------
Sales to External Customers.... $   22,870  $   26,250   -12.9% $   27,052   -15.5% $   73,343  $   69,967     4.8%
                                  =========   =========           =========           =========   =========

Segment Profit................. $      183  $    4,578   -96.0% $    2,935   -93.8% $    5,613  $    8,058   -30.3%
                                  =========   =========           =========           =========   =========`



|Note - Segment profit for the three and nine months ended
March 31, 2004 includes approximately $0.2 million and $2.5 million,
respectively, of employee severance and consolidation costs as a result of the
consolidation of our communications operations that resulted in the closure of
our Carlsbad, California facility in August 2003.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Sales to External Customers

Segment Profit.  For the three months ended March 31, 2005, segment
profit was negatively impacted primarily by a reduction in gross margin as a
percent of sales, from approximately 48% in the prior fiscal year to
approximately 41% in fiscal 2005, as well as increased R&D expenses.  The
decrease in gross margin was primarily the result of an increased proportion of
sales from lower margin, production rate business, competitive pricing primarily
from commercial and communications customers, and softness in the Group's higher
margin, quick-turn business during the quarter.  R&D costs increased as a
result of our recent investment in additional engineering resources to serve the
government market and the timing of outside development costs associated with
our product development efforts.  For the nine months ended March 31, 2005, the
Group's segment profit was negatively impacted primarily by reduced gross
profits together with increased SG&A and R&D expenses.  The decrease in
gross margin as a percent of sales, from approximately 47% in the prior fiscal
year to approximately 43% in fiscal 2005, was primarily the result of higher mix
of sales from lower margin, production rate business and the other factors
discussed previously.  SG&A expenses increased due to staff increases to
support growth, and the timing of certain discretionary expenses while R&D
expenses increased as a result of the factors discussed previously.  In the
comparable periods of the prior fiscal year, employee severance and
consolidation costs recorded from the consolidation of our communications
operations that resulted in the closure of our Carlsbad, California facility in
August 2003 of approximately $0.2 million and $2.5 million, respectively,
negatively impacted segment profit.  For these reasons, segment profit as a
percentage of sales to external customers was 0.8% and 7.7% for the three and
nine month periods ended March 31, 2005, respectively, compared to 17.4% and
11.5%, respectively, for the same periods of fiscal 2004.

Europe Group

`Three Months Ended                   Nine Months Ended
                                  -------------------------------------------------   -----------------------------
                                         March 31,                                           March 31,
                                  ---------------------    %      Dec. 31,     %      ---------------------    %
Thousands                             2005        2004  change      2004    change        2005        2004  change
                                  ---------   --------- -------   --------- -------   ---------   --------- -------
Sales to External Customers.... $   14,464  $   10,342    39.9% $   15,194    -4.8% $   41,121  $   25,705    60.0%
                                  =========   =========           =========           =========   =========

Segment Profit................. $    3,043  $    2,105    44.6% $    3,877   -21.5% $    9,309  $    5,481    69.8%
                                  =========   =========           =========           =========   =========`

Sales to External Customers.  For the three and nine months ended
March 31, 2005, sales to external customers increased 
$4.1 million and $15.4 million, respectively, compared to the comparable periods
of the prior fiscal year, of which $734,000 and $2.7 million, respectively,
resulted from changes in currency exchange rates used to translate the Group's
financial statements to U.S. dollars.  During the three and nine months ended
March 31, 2005, sales to one communications customer, Ericsson, represented $6.5
million and $17.4 million, respectively, compared to $2.8 million and $6.2 million,
respectively, in

---

the same periods of the prior fiscal year ended March 31, 2004.  On a sequential
basis, sales to external customers decreased slightly compared with the prior quarter.

Segment Profit. For the three and nine month periods ended March 31,
2005, segment profit increased $938,000 and 
$3.8 million, respectively, compared to the comparable periods of the prior
fiscal year, due primarily to the increase in sales, offset by reduced gross
profit as a result of a higher mix of lower margin production orders and an
increase in SG&A and R&D expenses commensurate with the growth in the
business.  For these reasons, segment profit as a percentage of sales was 21.0%
and 22.6% for the three and nine month periods of fiscal 2005, respectively,
compared to 20.4% and 21.3% for the same periods of fiscal 2004.

Liquidity, Capital Resources and Financial Condition

Our objective is to maintain adequate financial resources and
liquidity to finance our operations.  We use a combination of proceeds from the
sale or issuance of equity securities and internally generated funds to finance
our working capital requirements, capital expenditures, and operations.

Our cash balance of $55.0 million at March 31, 2005 represents an increase of
$7.1 million during the nine months ended March 31, 2005.  Net cash flows from
operating activities and proceeds from the exercise of employee stock options
were the principal sources of funding, and cash was used for a mix of activities
including working capital needs and capital expenditures.  We anticipate that
this trend will continue during the remainder of the fiscal year ending June 30,
2005; however, future cash inflows from employee stock option exercises are
generally dependent upon the amount of excess, if any, between the current
market price of our common stock and the price the employee must pay to exercise
the option and are therefore difficult to predict with certainty.

Cash Flows

Changes to our cash balance during the nine months ended March 31, 2005,
and 2004 follows:

Comparison of Condensed
Consolidated Statements of Cash Flows

`Nine Months Ended
                                                      March 31,
                                               ---------------------
                                                 2005        2004
                                               ---------   --------- 
Cash Flow Provided by (Used in)                       Thousands
   Operating activities.....................  $   7,794   $      32
   Investing activities.....................     (2,623)     (2,269)
   Financing activities.....................      1,345       2,330
   Net effect on cash from:
      Exchange rate changes.................        555         268
                                               =========   =========`

Operating Activities

Cash flows from operating activities during the nine months ended March 31,
2005, were principally the result of net income, changes in working capital and
the impact of certain non-cash and non-operating activities including
depreciation and amortization of $4.3 million.

The underlying drivers of the changes in working capital during the first
nine months of fiscal 2005 were as follows:

- The decrease in accounts receivable provided operating cash of $655,000,
before foreign currency translation adjustments of approximately $523,000, due
to cash collections during the period.
- The increase in prepaid and other expenses used cash from operations of $1.2
million, due primarily to the timing of payments for our annual insurance
renewals and other costs.
- U.S. income tax refunds of approximately $3.1 million were received from the
carryback of tax losses to prior tax years.
- The decrease in total liabilities, excluding income taxes payable, used cash
from operations of $3.3 million, before foreign currency translation adjustments
of $0.6 million, due principally to the timing of payments.

Investing Activities

Our principal recurring investing activity is the funding of capital
expenditures necessary to support the growth of our business and to enhance the
productivity of our operations. During the nine months ended March 31, 2005, we
used $2.6 million for the purchase of property and equipment.

Financing Activities

We received proceeds of $1.3 million from the issuance of common stock
associated with the exercise of employee stock options during the nine months
ended March 31, 2005.

Exchange Rates

Changes in foreign currency exchange rates during the nine months ended
March 31, 2005 impacted our cash balances by $555,000.  Due to our international
operations, where transactions are recorded in functional currencies other than
the U.S. dollar, the effects of changes in foreign currency exchange rates on
existing cash balances during any given period results in amounts on the
consolidated statements of cash flows that may not reflect the changes in the
corresponding accounts on the consolidated balance sheets.

Cash Requirements

On March 30, 2005, SBS Technologies, Inc. entered into a revolving line
of credit agreement (Credit Agreement) with Wells Fargo Bank National
Association.  The credit agreement provides for borrowings for working capital
and general corporate purposes of up to $20 million and any outstanding
borrowings are due and payable in full on March 28, 2006.

Effective on May 9, 2005, the Credit Agreement was amended (First Amendment
to Credit Agreement) to modify the minimum tangible net worth requirement
defined in Section 4.9(a) of the agreement to exclude the impact of foreign
currency translation adjustments from the minimum required balance.

The terms of the Credit Agreement, as amended, require SBS to comply with
certain financial and other covenants, including but not limited to:

- an Adjusted Tangible Net Worth balance of not less than $109,129,000, plus
50% of quarterly net income beginning with the quarter ended March 31, 2005,
excluding any loss quarters, plus all proceeds from equity offerings;

(Adjusted Tangible Net Worth defined as total stockholders' equity
minus the aggregate of any intangible assets; any treasury stock; any
receivables from stockholders', employees and/or affiliates; and foreign
currency translation adjustments)

- a Leverage Ratio of not greater than 0.50 to 1;

(Leverage Ratio defined as total liabilities divided by Tangible Net
Worth.  Tangible Net Worth defined as total stockholders' equity minus the
aggregate of any intangible assets; any treasury stock; and any receivables from
stockholders', employees and/or affiliates)

- a Quick Ratio of not less than 1.75 to 1;

(Quick Ratio calculated as total current assets excluding inventory,
divided by total current liabilities)

- an average Accounts Receivable Days Outstanding balance of no more than 90
days; and

(Accounts Receivable Days Outstanding calculated as average net trade
receivables divided by net sales for the period times the number of days in
reporting period)

- a requirement to maintain profitable operations defined as no more than two
(2) consecutive loss quarters or a net loss for the total fiscal year.

As of May 10, 2005, we have no borrowings outstanding under the Credit
Agreement and SBS is in compliance with all financial covenants required under
the terms of the amended Credit Agreement.

We believe the funds available under the revolving line of credit agreement
and our internally generated cash flows will provide us with sufficient capital
resources and liquidity to manage our operations, meet our contractual
obligations, and fund capital expenditures, excluding acquisitions, for at least
the next twelve months.  Because long-term cash flow cannot be predicted with
certainty, it is possible that SBS could require additional external financing
in the future and that the financing may not be available on terms acceptable to
SBS or at all.

---



Capital Resources

In July 2004, we entered into a lease agreement with a third party which
requires the landlord to construct a new building.  We currently anticipate
moving our Albuquerque, New Mexico operations into the new facility at the end
of May 2005.  In connection with the lease agreement, we received a tenant
improvement allowance to be used to pay for certain tenant improvements related
to the new facility.  As of April 30, 2005, we anticipate that our tenant
improvement expenditures will exceed our allowance, and the potential excess
could range from $1.5 million to $2 million.

As of the date of this report, we do not have any material capital
expenditure commitments.  However, we estimate that we could incur obligations
for potential excess tenant improvements during construction of our new facility
through June 2005.

Contractual Obligations

SBS is committed under non-cancelable operating leases for buildings and
equipment that expire at various dates through fiscal 2015.  The following is a
schedule of our contractual obligations at March 31, 2005.

`CONTRACTUAL OBLIGATIONS

                             Payments due by fiscal years ending June 30,
                         ----------------------------------------------------
                                    Remainder  2006 -     2008 -    2010 and
Thousands                  Total     of 2005    2007       2009      beyond
-----------------------  ---------  --------- ---------  ---------  ---------
Operating lease
   obligations......... $  11,158        590     3,566      2,225      4,777
                         ---------  --------- ---------  ---------  ---------
Total.................. $  11,158        590     3,566      2,225      4,777
                         =========  ========= =========  =========  =========`

Off-Balance Sheet Arrangements

As of March 31, 2005, we had no transactions that would be considered
off-balance sheet arrangements in accordance with the definition under SEC
rules.

Inflation

For the three and nine month periods ended March 31, 2005 and 2004, we
experienced no significant impact from inflation.

Business Outlook

In summary, we have seen a reduction in sales from the semiconductor
manufacturing equipment sector, quick-turn business, and delays in production
from government programs.  However, we are confident we are taking the right
actions to develop our business. We are maintaining our strong focus on product
and global business development as evidenced by the growth in our European
business, our recent investments in Asia, and our aggressive new product
introductions. We believe that these actions will continue our long term
growth.

In the government market, opportunities continue to be based on upgrade
programs as well as new applications in unmanned vehicles. Our systems business
is still the majority of our government opportunities, and the delays in
production from government programs we have experienced are primarily a matter
of timing of follow-on orders.  As previously announced, we have invested in
additional resources to accelerate growth in this market.

The commercial market is flat-to-slow growth with the key areas for SBS being
semiconductor manufacturing equipment and medical. The strength of our company
and market diversity enables us to weather the fluctuations of the cyclical
semiconductor manufacturing market. We remain committed to this market and we
continue to work with our customers on their current and next generation
systems.  Advanced medical applications require higher performance data transfer
capabilities.  Our InfiniBand® product line is being evaluated for several
of these applications.

Communications sales in the wireless area are strong, with Ericsson still
being our largest customer.  To support continued growth in this market, we have
extensive development efforts underway for Advanced Mezzanine Card-based
products for the emerging ATCA market.  Feedback from our customers who have
reviewed our Advanced Mezzanine products has validated our product plans.  At
SUPERCOMM® in June, we will be announcing several new additions to our
Advanced Mezzanine Card product family.  We believe that this product family
will be a significant contributor to our long term growth.

Looking forward, we believe the business conditions we experienced in the
third quarter will continue through the balance of our fiscal year.  Based on
our forecasts, current backlog, and timing of new orders, we expect sales for
the fourth quarter ending June 30, 2005 to be between $35 million and
$37 million; however, actual results may vary.  For the fiscal year ending
June 30, 2005, we expect our sales will be approximately $150 million; however,
actual results may vary.  Since we currently are conducting our annual
evaluation of our business plans, we have removed the financial model from our
web site until this process is completed.

Management expects that corporate representatives of SBS will meet privately
during the quarter with investors, investment

---

analysts, the media and others and
may reiterate the Business Outlook published in this Form 10-Q.  Unless a notice
stating otherwise is published or filed with the Securities and Exchange
Commission on Form 8-K, the public can continue to rely on this Business Outlook
as representing our current expectations on matters covered.  At the same time,
this Form 10-Q and the included Business Outlook will remain publicly available
on our Web site (www.sbs.com).

Recently Issued Accounting Standards

In November 2004, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards No. 151 (SFAS 151), Inventory Costs.
SFAS 151 amends the guidance in ARB No. 43, Chapter 4, Inventory Pricing, to
clarify the accounting for abnormal amounts of idle facility expense, freight,
handling charges and wasted material (spoilage).  SFAS 151 requires all such
(abnormal) costs to be treated as current-period charges under all
circumstances. In addition, fixed production overhead should be allocated based
on the normal capacity of the production facilities, with unallocated overhead
charged to expense when incurred.  SFAS 151 shall be effective for inventory
costs incurred during fiscal years beginning after June 15, 2005, however,
earlier application is permitted for fiscal years beginning after the date SFAS
151 was issued.  We do not believe the adoption of SFAS 151 will have a material
impact on our financial condition, results of operations or cash flows.

In December 2004, the FASB issued FASB Staff Position No. FAS 109-
1, Application of FASB Statement No. 109, Accounting for Income Taxes, to
the Tax Deduction on Qualified Production Activities Provided by the American
Jobs Creation Act of 2004 (FSP 109-1) and FASB Staff Position No. FAS 109-
2, Accounting and Disclosure Guidance for the Foreign Earnings Repatriation
Provision within the American Jobs Creation Act of 2004 (FSP 109-2).  FSP 109-1
clarifies the guidance in SFAS No. 109, Accounting for Income Taxes (SFAS
109) that applies to the new deduction for qualified domestic production
activities under the American Jobs Creation Act of 2004 (the Act).  FSP 109-1
clarifies that the deduction should be accounted for as a special deduction
under Statement 109, not as a tax-rate reduction, because the deduction is
contingent on performing activities identified in the Act.  As a result,
companies qualifying for the special deduction will not have a one-time
adjustment of deferred tax assets and liabilities in the period the Act is
enacted.  FSP 109-2 addresses the effect of the Act's one-time deduction for
qualifying repatriations of foreign earnings.  FSP 109-2 allows additional time
for companies to determine whether any foreign earnings will be repatriated
under the Act's one-time deduction for repatriated earnings and how the Act
affects whether undistributed earnings continue to qualify for SFAS 109's
exception from recognizing deferred tax liabilities.  FSP 109-1 and FSP 109-2
were both effective upon issuance.  The adoption of FSP 109-1 and FSP 109-2 did
not have any material impact on our financial condition, results of operations
or cash flows.

In December 2004, the FASB issued SFAS No. 123 (Revised 2004), Share Based
Payment: an amendment of SFAS 123 and SFAS 95 (SFAS 123R).  SFAS 123R replaces
SFAS 123, supersedes APB 25, and amends SFAS No. 95, "Statement of
Cash Flows".  SFAS 123R requires companies to recognize in the income
statement the grant-date fair value of stock options and other equity-based
compensation issued to employees.  While the fair value method under SFAS
123R is very similar to the fair value method under SFAS 123 with respect to
measurement and recognition of stock-based compensation, management is currently
evaluating the impact of several of the key differences between the two
standards on our financial statements. For example, SFAS 123 permits us to
recognize forfeitures as they occur, while SFAS 123R will require us to estimate
future forfeitures and adjust our estimate on a quarterly basis.  SFAS 123R will
also require a classification change in the statement of cash flows; whereby, a
portion of the tax benefit from stock options will move from operating cash
flows to financing cash flows (total cash flows will remain unchanged).  We are
required to adopt SFAS 123R during the first quarter of our fiscal year ending
June 30, 2006, which ends September 30, 2005.  While we continue to
evaluate the impact of SFAS 123R on our financial statements, we do not expect
the adoption of Statement 123R to have a significant effect on our financial
position or cash flows, but adoption will impact our results of operations.  An
illustration of the impact on our net income and net income per share, assuming
we had applied the fair value recognition provisions of SFAS 123 using the
Black-Scholes methodology, is presented in note 1 to the condensed consolidated
financial statements included elsewhere in this Form 10-Q.  We have not yet
determined whether we will use the Black-Scholes method in our adoption of
Statement 123R.

In response to SFAS 123R, on April 21, 2005, the Board of Directors of SBS
approved the acceleration of the vesting of all outstanding unvested stock
options with an exercise price greater than $9.22 (the Acceleration).  The
Acceleration was effective for all such options outstanding on April 21, 2005,
all of which were granted by the Company when the accounting rules permitted use
of the intrinsic-value method of accounting for stock options.  All of the other
terms and conditions applicable to such outstanding stock option grants still
apply.  SBS' decision to accelerate the vesting of these options was in
anticipation of compensation expense to be recorded subsequent to the effective
date of SFAS 123R on July 1, 2005 in connection with outstanding unvested stock
options issued to employees.  As a result of the Acceleration, options to
purchase approximately 1.3 million shares of SBS' common stock became
immediately exercisable.  Due to the Acceleration, SBS will not recognize future

---

compensation expense totaling approximately $2.5 million in fiscal years ending
June 30, 2006 and beyond (estimated using the Black-Scholes fair value model).
The stock-based compensation expense which otherwise would have been reported in
future periods, will be reported in the Company's fiscal year ended June 30,
2005 financial statements in the pro forma footnote disclosures, as permitted
under the provisions of SFAS 123 prior to its revision.

Item 3- Quantitative and Qualitative
Disclosures about Market Risk

Our principal investment is cash invested in either money market accounts
or in overnight repurchase agreements.  Due to the nature of these investments,
we believe that the market risk related to these investments is minimal.  As a
result of our German and Canadian operating and financing activities, we are
exposed to market risk from changes in foreign currency exchange rates.  At
present we do not utilize any derivative instruments to manage this risk.

Currency translation.  The results of operations of our foreign
subsidiaries are translated into U.S. dollars at the average exchange rates for
each period concerned. The balance sheets of foreign subsidiaries are translated
into U.S. dollars at the closing exchange rates. Any adjustments resulting from
the translation are recorded as translation adjustments in other comprehensive
income.  Foreign currency exchange rate exposure is most significant with
respect to the euro.  For the nine months ended March 31, 2005 compared to the
same period of the prior fiscal year, net sales were positively impacted by the
change in foreign currencies, primarily the euro, due to the weakening of the
U.S. dollar, by approximately $2.7 million.

Currency transaction exposure.  Currency transaction exposure
arises where a business or company makes actual sales and purchases in a
currency other than its own functional currency. We generally source raw
materials and sell our products within our local markets in their functional
currencies and therefore have limited currency transaction exposure.

Item 4- Controls and Procedures

Quarterly Controls Evaluation and Related CEO and CFO Certifications

As of the end of the period covered by this Quarterly Report on Form 10-
Q, we evaluated the effectiveness of the design and operation of
"disclosure controls and procedures" (Disclosure Controls). The
controls evaluation was done under the supervision and with the participation of
management, including our Chief Executive Officer (CEO) and Chief Financial
Officer (CFO).

Attached as Exhibits to this Quarterly Report on Form 10-Q are certifications
of the CEO (Exhibit 31.1) and the CFO (Exhibit 31.2), which are required in
accordance with Rule 13a-14 of the Securities Exchange Act of 1934 (the Exchange
Act). This Controls and Procedures section includes the information concerning
the controls evaluation referred to in the certifications and it should be read
in conjunction with the certifications for a more complete understanding of the
topics presented.

Disclosure Controls and Internal Controls

Disclosure Controls are procedures designed to ensure that information
required to be disclosed in our reports filed under the Exchange Act, such as
this Quarterly Report, is recorded, processed, summarized and reported within
the time periods specified in the U.S. Securities and Exchange Commission's
rules and forms. Disclosure Controls are also designed to ensure that the
information is accumulated and communicated to our management, including the CEO
and CFO, as appropriate to allow timely decisions regarding required disclosure.

Internal control over financial reporting (Internal Controls) are procedures
which are designed to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external
purposes in accordance with accounting principles generally accepted in the
United States of America and includes those policies and procedures that: (1)
pertain to the maintenance of records that in reasonable detail accurately and
fairly reflect the transactions and dispositions of the assets of SBS; (2)
provide reasonable assurance that transactions are recorded as necessary to
permit preparation of financial statements in accordance with generally accepted
accounting principles, and that receipts and expenditures of SBS are being made
only in accordance with authorizations of management and directors of SBS; and
(3) provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use or disposition of SBS' assets that could have a
material effect on the financial statements.  To the extent that components
of our Internal Controls are included in our Disclosure Controls, they are
included in the scope of our quarterly controls evaluation.

---



Limitations on the Effectiveness of Controls

Our management, including the CEO and CFO, does not expect that our
Disclosure Controls or Internal Controls will prevent all error and all fraud. A
control system, no matter how well designed and operated, can provide only
reasonable, not absolute, assurance that the control system's objectives will be
met.  Further, the design of a control system must reflect the fact that there
are resource constraints, and the benefits of controls must be considered
relative to their costs. Because of the inherent limitations in all control
systems, no evaluation of controls can provide absolute assurance that all
control issues and instances of fraud, if any, within the company have been
detected. These inherent limitations include the realities that judgments in
decision-making can be faulty, and breakdowns can occur because of simple error
or mistake. Controls can also be circumvented by the individual acts of some
persons, by collusion of two or more people, or by management override of the
controls. The design of any system of controls is based in part upon certain
assumptions about the likelihood of future events, and we cannot assure that any
design will succeed in achieving its stated goals under all potential future
conditions. Over time, controls may become inadequate because of changes in
conditions or deterioration in the degree of compliance with policies or
procedures. Because of the inherent limitations in a cost-effective control
system, misstatements due to error or fraud may occur and not be detected.

Compliance with Section 404 of Sarbanes-Oxley Act

Pursuant to Section 404 of the Sarbanes-Oxley Act of 2002 (the Act),
beginning with our Annual Report on Form 10-K for the fiscal year ending June
30, 2005, we will be required to furnish a report by our management on our
internal control over financial reporting. This report will contain, among other
matters, an assessment of the effectiveness of our internal control over
financial reporting as of the end of our fiscal year, including a statement as
to whether or not our internal control over financial reporting is effective.
This assessment must include disclosure of any material weaknesses in our
internal control over financial reporting identified by management.  If we
identify one or more material weaknesses in our internal control over financial
reporting, we will be unable to assert our internal control over financial
reporting is effective.  This report will also contain a statement that our
independent registered public accountants have issued an attestation report on
management's assessment of such internal controls and a conclusion on the
operating effectiveness of those controls.

Management acknowledges its responsibility for internal controls over
financial reporting and seeks to continually improve those controls.  In order
to achieve compliance with Section 404 of the Act within the prescribed period,
we are currently performing the system and process documentation and evaluation
needed to comply with Section 404, which is both costly and challenging.  We
believe our process, which began in fiscal 2004 and is continuing in fiscal 2005
for documenting, evaluating and monitoring our internal control over financial
reporting is consistent with the objectives of Section 404 of the Act.

Conclusions

Based on our controls evaluation (with the participation of our CEO and
CFO), as of the end of the period covered by this report, our CEO and CFO have
concluded that, subject to the limitations noted above, our disclosure controls
and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange
Act) are effective to provide reasonable assurance that information required to
be disclosed by us in reports that we file or submit under the Exchange Act is
recorded, processed, summarized and reported within the time periods specified
in Securities and Exchange Commission rules and forms.

There was no change in our internal control over financial reporting during
our recently completed quarter that has materially affected, or is reasonably
likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

Item 5 - Other Information

On May 9, 2005, SBS Technologies, Inc. and Wells Fargo Bank National
Association entered into an amendment to the Company's revolving line of credit
agreement (First Amendment to Credit Agreement).  The credit agreement provides
for borrowings for working capital and general corporate purposes of up to $20
million and any outstanding borrowings are due and payable in full on March 28,
2006.  The revolving line of credit agreement was amended to modify the minimum
tangible net worth requirement (Adjusted Tangible Net Worth) defined in Section
4.9(a) of the agreement to exclude the impact of foreign currency translation
adjustments from the minimum required balance.

As of May 10, 2005, there were no borrowings outstanding under the
agreement.

A copy of the First Amendment to Credit Agreement between SBS Technologies,
Inc., and Wells Fargo Bank National Association effective May 9, 2005 is
attached hereto as Exhibit 10-cr.

---



Item 6- Exhibits





03.i 	(1)	Restated Articles of Incorporation.

03.ii	(1)	Second Restated and Amended Bylaws.

04.a	(1)	Article VI of the Restated Articles of Incorporation, as
included in the Restated Articles of Incorporation of SBS Technologies,
Inc.

04.b	(1)	Articles I and II of the Second Restated and Amended Bylaws of
SBS Technologies, Inc.

04.c	(1)	Form of certificate evidencing Common Stock.

04.1	(1)	Rights Agreement dated September 15, 1997 between SBS
Technologies, Inc. and First Security Bank (now Wells Fargo), National
Association, as Rights Agent, which includes the form of Right Certificate as
Exhibit A and the Summary of Rights to Purchase Common Stock as Exhibit B.2 and
Agreement to Serve as Rights Agent; on January 21, 1998, pursuant to Section 21
of the Shareholder Rights Agreement dated September 15, 1997, we appointed
Norwest Bank Minnesota N.A. (now Wells Fargo) as Successor Rights Agent.

10.1	(1)	Addendum to Lease Agreement between Edwin Mair KG and SBS
Technologies, GmbH & Co. KG (a wholly-owned subsidiary of SBS Technologies,
Inc., German Holdings LLC, a wholly-owned subsidiary of SBS Technologies, Inc.)
dated September 14, 2004.

10.cj	(1)	Form of Indemnification Agreement between SBS Technologies,
Inc. and Directors and Executive Officers.

10.ck	(1)	Form of Option Agreement for option grants to executive
officers of SBS Technologies, Inc. under the 1993 Director and Officer Stock
Option Plan.

10.cm	(1)	Lease between SBS Technologies, Inc. and Brunacini
Development Ltd. Co. dated 
July 12, 2004.

10-cm	(1)	Lease agreement between SBS Technologies, Inc. and West
Street Associates, LP dated March 18, 2005.

10-cn	(1)	Credit Agreement between SBS Technologies, Inc. and Wells
Fargo Bank National Association, effective March 30, 2005.

10-co	(1)	Revolving Line of Credit Note with Wells Fargo Bank National
Association, effective March 30, 2005.

10-cp	(1)	Security Agreement granted to Wells Fargo Bank National
Association, effective March 30, 2005.

10-cq	(1)	Employment agreement between Christopher J. Amenson and SBS
Technologies, Inc., effective April 11, 2005.

10-cr	(1)	First Amendment to Credit Agreement between SBS Technologies,
Inc. and Wells Fargo Bank National Association dated March 30, 2005, effective
May 6, 2005.

14	(1)	Code of Ethics.

31.1	(1)	Certification of the Company's Chief Executive Officer under
Section 302 of the Sarbanes-Oxley Act of 2002.

31.2	(1)  	Certification of the Company's Chief Financial Officer under
Section 302 of the Sarbanes-Oxley Act of 2002.

32.1	(1)	Certification of the Chief Executive Officer, Pursuant to 18
U.S.C. Section 1350 As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002.

32.2	(1)  	Certification of the Chief Financial Officer, Pursuant to 18
U.S.C. Section 1350 As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002.



(1)   See Exhibit Index

---



SIGNATURES

Pursuant to the requirements of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.



SBS TECHNOLOGIES, INC.

(Registrant)

By: /s/ Clarence W. Peckham
	Clarence W. Peckham
	Chief Executive Officer

By: /s/ James E. Dixon Jr.	James E. Dixon Jr.Executive Vice President and 
Chief Financial Officer



Date: May 10, 2005



---





|INDEX TO EXHIBITS
|-----------------
|                 
|Exhibit Number   

|3.i   | Restated Articles of Incorporation dated November 10,
2000                                                                                                                                                                                                                                                                                                                                                                                                                                       | 10-Q | 001-10981 | 3.i   | 9-30-2000  |  
|----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---- | --------- | ----- | ---------- | -
|3.ii  | Second Restated and Amended By-laws dated November 13,
2003                                                                                                                                                                                                                                                                                                                                                                                                                                      | 10-Q | 001-10981 | 3.ii  | 12-31-2003 |  
|4.a   | Article VI of the Articles of Incorporation, as amended, as
included in the Articles of Incorporation of SBS Technologies, Inc.                                                                                                                                                                                                                                                                                                                                                                  | 10-Q | 001-10981 | 3.i   | 9-30-2000  |  
|4.b   | Articles I and II of the Second Restated and Amended By-laws of
SBS Technologies, Inc.                                                                                                                                                                                                                                                                                                                                                                                                           | 10-Q | 001-10981 | 3.ii  | 12-31-2003 |  
|4.c   | Form of certificate evidencing Common Stock                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 10-Q | 001-10981 | 4.c   | 3-31-2001  |  
|4.1   | Rights Agreement dated as of September 15, 1997 between SBS
Technologies, Inc. and First Security Bank (now Wells Fargo), National
Association, as Rights Agent, which includes the form of Right Certificate as
Exhibit A, and the Summary of Rights to Purchase Common Stock as Exhibit B.2.
Agreement to Serve as Rights Agent.  On January 21, 1998, pursuant to Section 21
of the Rights Agreement, SBS appointed Norwest Bank Minnesota, N.A. (now Wells
Fargo) as Successor Rights Agent. | 10-K | 001-10981 | 4.1   | 6-30-2002  |  
|10.1  | Addendum to Lease Agreement between Edwin Mair KG and SBS
Technologies, GmbH & Co. KG (a wholly-owned subsidiary of SBS Technologies,
Inc., German Holdings LLC, a wholly-owned subsidiary of SBS Technologies, Inc.)
dated September 14, 2004                                                                                                                                                                                                                                                   | 8-K  | 001-10981 | 10.1  | 9-14-2004  |  
|10.cj | Form of Indemnification Agreement between SBS Technologies, Inc.
and Directors and Executive Officers                                                                                                                                                                                                                                                                                                                                                                                            | 8-K  | 001-10981 | 10.cj | 12-28-2004 |  
|10.ck | Form of Option Agreement for option grants to executive officers
of SBS Technologies, Inc. under the 1993 Director and Officer Stock Option
Plan.                                                                                                                                                                                                                                                                                                                                                | 8-K  | 001-10981 | 10.ck | 12-30-2004 |  
|10.cm | Lease between SBS Technologies, Inc. and Brunacini Development
Ltd. Co. dated July 12, 2004                                                                                                                                                                                                                                                                                                                                                                                                      | 10-Q | 001-10981 | 10.cm | 12-31-2004 |  
|10-cm | Lease agreement between SBS Technologies, Inc. and West Street
Associates, LP dated March 18, 2005                                                                                                                                                                                                                                                                                                                                                                                               | 8-K  | 001-10981 | 10-cm | 3-24-2005  |  
|10-cn | Credit Agreement between SBS Technologies, Inc. and Wells Fargo
Bank National Association, effective March 30, 2005                                                                                                                                                                                                                                                                                                                                                                              | 8-K  | 001-10981 | 10-cn | 4-05-2005  |  
|10-co | Revolving Line of Credit Note with Wells Fargo Bank National
Association, effective March 30, 2005                                                                                                                                                                                                                                                                                                                                                                                               | 8-K  | 001-10981 | 10-co | 4-05-2005  |  
|10-cp | Security Agreement granted to Wells Fargo Bank National
Association, effective March 30, 2005                                                                                                                                                                                                                                                                                                                                                                                                    | 8-K  | 001-10981 | 10-cp | 4-05-2005  |  
|10-cq | Employment agreement between Christopher J. Amenson and SBS
Technologies, Inc., effective April 11, 2005                                                                                                                                                                                                                                                                                                                                                                                         | 8-K  | 001-10981 | 10-cq | 4-13-2005  |  
|10-cr | First Amendment to Credit Agreement between SBS Technologies,
Inc. and Wells Fargo Bank National Association dated March 30, 2005, effective
May 6, 2005                                                                                                                                                                                                                                                                                                                                         |      |           |       |            | X
|14    | Code of Ethics.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 8-K  | 001-10981 | 14    | 11-21-2003 |  
|31.1  | Section 302 certification of Clarence W. Peckham, Chief
Executive Officer                                                                                                                                                                                                                                                                                                                                                                                                                        |      |           |       |            | X
|31.2  | Section 302 certification of James E. Dixon Jr., Chief Financial
Officer                                                                                                                                                                                                                                                                                                                                                                                                                         |      |           |       |            | X
|32.1  | Section 906 certification of Clarence W. Peckham, Chief
Executive Officer                                                                                                                                                                                                                                                                                                                                                                                                                        |      |           |       |            | X
|32.2  | Section 906 certification of James E. Dixon Jr., Chief Financial
Officer                                                                                                                                                                                                                                                                                                                                                                                                                         |      |           |       |            | X